The accounting industry is evolving rapidly. One day, a new automation tool emerges, and the next, AI is making headlines. What was effective yesterday can quickly become outdated.

Stakeholders now demand clear results that demonstrate a strong return on investment (ROI). They depend on their financial partners for advice that fosters business growth. This has intensified the pressure on accounting firms to stay current.

To thrive, firms must adopt strategies that can adjust to the latest trends and technologies. Quick wins can deliver immediate results and a boost in confidence. However, sustainable growth occurs when you balance short-term results with smart, strategic investments. 

That said, this article outlines nine proven strategies to expand your accounting business and guide your next steps.

Understanding the Landscape of Accounting Firm Growth

The accounting industry is undergoing changes due to three key factors: new technology, larger firms acquiring smaller ones, and evolving client expectations. To grow your business, you need to embrace these trends.

Firstly, globalization has allowed accounting firms to expand internationally but has also heightened competition. Approximately 95% of accountants believe that quickly adopting new technology is important to maintain competitiveness. Concurrently, market consolidation is transforming the industry as larger firms take over smaller ones.

Clients now seek more than just basic number-crunching. They desire personalized services and strategic insights. A Xero survey indicates that 39% of millennials prefer advisors they enjoy collaborating with. To distinguish yourself, you must use your strengths effectively. About 51% of firms identify as early tech adopters or innovators, which helps them stay ahead.

Growth can take various forms for different accounting businesses. It may involve acquiring new clients, boosting revenue, or enhancing profits without increasing staff. Some firms concentrate on all these aspects, while others focus on entirely different things.

Another important factor that supports growth is technology. It automates tasks, improves workflows, and builds strategic relationships. Tools such as CRMs and client relationship platforms can make marketing smarter and offer better client services.

It’s also equally important to manage resources and revamp your financial and marketing strategies to meet your overall goals.

9 Strategies to Grow Your Accounting Firm

The accounting industry is full of challenges and opportunities. There are over 46,000 accounting firms in the U.S. alone. This creates many potential clients but also tough competition.

So, instead of looking back, focus on strategies to grow your firm this year.

Let’s look at proven methods to help you stand out and succeed.

1. Provide more value to retain existing clients

Your existing clients are important for your growth. Research from Harvard Business School shows that increasing client retention by just 5% can increase profits by 25% to 95%.

The first step of retaining clients is to understand their unique financial needs. Regular meetings, surveys, and feedback sessions can help you learn about their goals and pain points. With this knowledge, you can offer customize services instead of offering generic ones.

Great customer service matters too. Satisfied clients are 83% more likely to refer your services. This, ultimately, helps grow your business.

Another strategy is overcommunication. Share helpful resources like webinars or newsletters to become their trusted advisor. You can also use NPS (Net Promoter Score) surveys. These surveys measure client satisfaction and loyalty, giving you useful feedback for improvement.

Pro Tip: Want to get started? Check out the 2024 Accounting Client Satisfaction Benchmark Report for more tips.

2. Expand your services to find new clients

Think about offering more services to draw in new clients. Many accounting firms now offer cloud accounting, cybersecurity, virtual advising, and blockchain consulting. 

Small-to-medium businesses want advice beyond basic accounting, like help with financial growth and data analytics. 

Adding these services could help you reach more clients.

3. Mergers and acquisitions (M&A)

Mergers and acquisitions can grow an accounting firm by bringing in new clients, resources, and talent. However, they come with challenges. 

According to the 2022 Karbon Practice Excellence Report, firms with more than 51 employees can lose flexibility, making change harder. 

To handle this, firms should create a growth plan based on their values and goals. Whether expanding services or entering new markets, the plan should include standardized processes and flexible systems to manage change effectively.

4. Make strategic partnerships

Forming partnerships can help your firm access new expertise and offer more services. Look for partners who share your market and values. Also, check their reputation and see if their clients overlap with yours.

Here are some partnership models to consider:

• Referral partnerships: Partner with professionals in related fields like lawyers or financial advisors. You can refer clients to each other for complementary services
• Technology partnerships: Team up with software providers like Meegle, Xero, or QuickBooks to offer clients better accounting solutions. This improves service quality and client satisfaction
• Co-branding or joint ventures: Work with firms offering services like business consulting. Co-branding helps you expand services and attract new clients
• Industry alliances: Partner with trade groups or industry associations. This lets you reach niche markets and position your firm as a trusted advisor

Always have an exit plan in case the partnership doesn’t work out.

5. Invest in marketing

High-growth accounting firms often spend twice as much on marketing as others.

To start, follow these steps:

• Create a blog to share useful insights with potential clients
• Focus on SEO to make your firm easier to find online
• Invest in PPC ads to reach the right people
• Don’t ignore direct mail—targeted mail can build relationships better than digital ads

Don’t forget to make the best use of social media. With over 5 billion internet users, LinkedIn is a good place to start. You can also create a podcast or join relevant shows as a guest.

Additionally, use:

• Twitter for real-time updates and discussions
• Instagram for visual content
• Facebook to connect with community groups

Engaging across multiple platforms helps build your brand, reach more people, and create valuable connections.

6. Leverage technology for growing your accounting

Technology is essential for improving service, efficiency, and client satisfaction. Using the right tools can help you manage operations, reduce errors, and engage with clients more effectively.

Here are some tools you might find useful: 

A] Accounting and practice management tools

These tools help with client data, workflow automation, and staying compliant.

• Xero: A cloud-based accounting platform for bookkeeping, invoicing, and financial reporting. It’s ideal for small to medium-sized firms.
• Canopy: Canopy provides robust tax resolution and practice management solutions o tax professionals. It helps manage client data, ensure IRS compliance, store documents, and automate workflows. Together, these solutions addresses all the client needs.
• Cone: Cone offers proposal and billing software to accountants and bookkeepers. It creates proposals with the help of templates, e-signatures, invoicing, and payment features. This makes it an important tool to attract new clients and secure business deals.

B] Client feedback and reputation management

These platforms help you collect feedback and improve your reputation.

• ClearlyRated: ClearlyRated is a client feedback and reputation management platform for professional service firms in the staffing, accounting, legal, and consulting industries. It helps businesses collect, analyze, and use feedback through surveys and Net Promoter Score (NPS) metrics. ClearlyRated offers industry-specific insights and benchmarking data and highlights areas for improvement in customer sentiment. 
• SurveyMonkey: A versatile survey tool that helps firms collect client feedback on services, satisfaction, and overall experience.
• Trustpilot: A review platform where clients can leave feedback, helping you manage your firm’s reputation.

C] Marketing automation tools

These tools automate marketing tasks to attract and keep clients:

• HubSpot: An all-in-one marketing platform that automates emails, lead nurturing, and social media. Plus, it provides analytics to track performance.
• Mailchimp: Popular for email marketing, it also offers automation features for campaign management, customer segmentation, and reporting.
• Marketo: A robust marketing automation solution that supports lead generation, customer engagement, and detailed campaign analytics.

Using these tools not only boosts your firm’s accuracy but also shows clients that you are forward-thinking and tech-savvy.

7. Hiring and retaining top talent

The people you hire are key to your firm's success. Platforms like LinkedIn, Glassdoor, and Indeed help you find qualified candidates. However, keeping top talent requires more than just offering a good salary.

To retain talent, create an environment where employees feel appreciated and invested. Use data-driven tools to find candidates who match your skills and company culture.

Once hired, offer clear career paths with mentorship, training, and certifications. This helps employees grow professionally.

Regular performance reviews are also crucial. They give feedback and help you create personalized growth plans for each employee.

To boost job satisfaction, offer flexible work options and wellness programs. This shows your commitment to employee well-being and encourages loyalty. These steps will keep your team motivated and engaged.

8. Optimize internal processes and reassess operational efficiency

Improving internal processes helps save time and reduce mistakes, which is key in accounting.

Start by doing a process audit. This helps find problems and areas to improve. Use an audit template to map workflows and identify tasks that can be automated or improved. Look for ways to automate repetitive tasks, such as invoicing or data entry. Tools like RPA or AI solutions can help.

Then, set up a KPI system to track success. Focus on metrics like client satisfaction, error rates, and billable hours. Also, track key metrics like cost savings and revenue growth to see how your changes are working.

Review your processes regularly. This ensures your firm adapts to industry changes, allowing you to grow efficiently and meet client needs.

If you focus on efficiency, it helps your firm become stronger as it grows.

9. Collaborate with other professionals

Growing your firm often means partnering with other professionals, like financial advisors. These partnerships can help you offer better services and bring in more client referrals.

LinkedIn and industry-focused Facebook groups are great places to find potential partners. When reaching out, be clear about your goals and how both sides can benefit. Promote these partnerships to boost visibility for both networks.

After each partnership, review what worked. Use this feedback to improve your future strategies.

These steps will help you grow your accounting firm in line with your vision and market needs.

The Right Time to Plan Your Accounting Firm’s Growth

In the accounting industry, technology, regulations, and client expectations are always shifting. Firms focused on growth act early. They improve their services, create strong partnerships, and invest in marketing. These steps help them stay ahead of competitors.

But how can you know when your firm is ready to grow? Here are some clear signs to watch for:

• Rising demand: If more clients are asking for your services, it’s a strong signal to expand
• Changing client needs: Clients may need new services like advisory support, sustainability reporting, or forensic accounting. This could be a strong signal that your business is ready to expand in particular service areas
• Regulatory changes: New rules, like tax reforms or data protection laws, can create opportunities to offer new services.
• Economic growth: When the economy grows, businesses often need more accounting help, like audits, tax filings, and business valuations
• Industry consolidation: If mergers and acquisitions are increasing, firms that adapt can win more clients and expand
• Adopting new tools: If your firm uses AI for auditing or cloud systems for managing clients, you’re ready to handle more work efficiently
• Positive client feedback: Happy clients and repeat business are strong signs. A high Net Promoter Score (NPS) shows they trust your firm and want deeper relationships

These indicators can guide your decision to start planning for growth. Taking action at the right time can set your firm on a path to long-term success.

How NPS Software like ClearlyRated Can Boost Your Accounting Firm Growth

If your accounting firm is looking to grow, ClearlyRated has custom solutions designed just for you.  It offers tools to create and manage Net Promoter Score (NPS) surveys, letting you gather valuable client feedback.

What makes ClearlyRated unique is its focus on real-time feedback and powerful analytics. You can act quickly on client insights to improve your service. The platform lets you track NPS scores over time and compare them to industry standards. This helps you increase client satisfaction and loyalty.

ClearlyRated also provides a Satisfaction Survey Checklist to guide you through the process. This checklist helps you avoid common mistakes and keep your survey on track.

The software integrates smoothly with CRM systems like Salesforce, Erecruit and Bullhorn. With these one-click integrations, this makes it easy for your team to manage feedback without extra work.

An Example of an Accounting Firm Using ClearlyRated for Success

A global leader in accounting, Perkins & Co., realized early on how important it is to have good data. 

However, until 2011, they didn’t track any metrics related to their service performance. Their client satisfaction data was inconsistent, mainly coming from casual chats with clients. This created a bias, as they usually engaged with clients they already had strong relationships with. 

Without industry benchmarks, they couldn't truly assess how their service compared to others.

Recognizing this, Perkins & Co. turned to NPS to get accurate data and genuine client insights. They used this feedback to improve internal processes, enhance their communication standards across the firm, and celebrate service wins through ClearlyRated's "shout-out" feature. 

The firm has also used positive client testimonials from the NPS process to support its marketing efforts. Their dedication to client feedback through NPS earned them ClearlyRated's "Best of Accounting" award for multiple years, highlighting their commitment to excellent service.

Moreover, they are also the first-ever ClearlyRated Best of Accounting 10-Year Diamond Winner for client satisfaction.

Read the entire case study here.

Plan Your Accounting Firm Growth With ClearlyRated

Growing an accounting firm can be simple if you plan carefully. With the right approach, you can grow. Each step—like adopting new technology, adjusting pricing, or forming partnerships—helps you expand.

By following these strategies consistently, your firm will grow steadily. Over time, it can become a bigger, well-established business. The key is staying focused.

If you're ready to grow faster, ClearlyRated can help. Book a free demo with ClearlyRated today!

FAQs

1. How can an accounting firm set effective growth goals? 

Accounting firms should set SMART goals that match their vision. They must regularly check progress and adjust strategies when needed.

2. What role does technology play in the growth of an accounting firm? 

Technology helps improve processes, accuracy, and client service. It also helps make data-driven decisions, supporting long-term growth.

3. How can an accounting firm improve client retention? 

An accounting firm can improve retention by offering high-quality services to their clients. Using client feedback and acting on it also builds trust.

4. What are some key marketing strategies for accounting firms?

Some of the key marketing strategies include creating a strong online presence, sharing valuable content, networking at events, and maintaining client relationships.